U.S. stocks were on track to open higher Monday after positive news on the trade front emerged from the G-7 meetings in Biarritz, France.
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Dow Jones Industrial Average futures were up more than 200 points, or 0.78 percent, after President Trump said Monday trade talks with Beijing are continuing despite last week’s escalation of the trade war. Over the weekend, Trump reached a “billion-dollar” trade deal with Japan.
“Great respect for the fact that President Xi & his Representatives want ‘calm resolution,’” Trump tweeted. “So impressed that they are willing to come out & state the facts so accurately. This is why he is a great leader & representing a great country. Talks are continuing!”
The early gains have helped restore some investor confidence after the Dow Jones Industrial Average plunged by more than 600 points on Friday following both the U.S. and China escalating their more than year-long trade war.
Trump on Friday ordered U.S. companies to start “ looking for an alternative to China” after Beijing announced it would slap tariffs on $75 billion worth of U.S. goods and reinstated taxes on others. Trump responded by hitting Chinese goods with even bigger tariffs.
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Some of the trade-sensitive names were rebounding Monday morning. Ford was on track to gain more than 1 percent after sliding 3 percent on Friday following the news that China would reinstate tariffs on U.S. autos. Elsewhere, the chipmaker AMD was up more than 3 percent after cratering more than 7 percent on Friday.
On the data front, durable goods orders rose 2.1 percent in July, topping the 1.1 percent advance that was expected.
Commodities were higher with gold up 0.2 percent at $1,540.70 an ounce and West Texas Intermediate crude oil up 1.09 percent at $54.76 a barrel.
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Meanwhile, U.S. Treasurys were rallying, with the 10-year yield down 1.1 basis points at 1.527 percent.
The U.S. open looks to be a sharp reversal from the losses suffered overnight in Asia. Japan’s Nikkei fell 2.17 percent while China’s Shanghai Composite and Hong Kong’s Hang Seng lost 1.91 percent and 1.17 percent, respectively, after Friday’s escalation of the trade war.
